Regular Session
Government Affairs & Regulatory Compliance Analysis
HB4042 expands the Railroad Commission of Texas (RRC) jurisdiction by removing the "natural" gas qualifier from the Utilities Code, effectively subjecting propane and other non-natural gas distribution systems to state safety fees and reporting requirements. Operators of propane distribution pipelines and master-metered systems (e. g.
Rep. Eddie Morales·House Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-06-22). Review with your legal and compliance teams to understand implications.
Affected business types:
lowMinimal cost impact anticipated.
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JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB4042
HB4042 expands the Railroad Commission of Texas (RRC) jurisdiction by removing the "natural" gas qualifier from the Utilities Code, effectively subjecting propane and other non-natural gas distribution systems to state safety fees and reporting requirements. Operators of propane distribution pipelines and master-metered systems (e. g.
HB4042 was authored by Texas Representative Eddie Morales during the Regular Session.
HB4042 was signed into law by Governor Greg Abbott on June 22, 2025.
HB4042 is enforced by Railroad Commission of Texas (RRC).
The regulatory priority for HB4042 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB4042 is estimated as "low". This may vary based on industry and implementation requirements.
HB4042 addresses topics including fees & other nontax revenue, fees & other nontax revenue--state, safety, utilities and utilities--general.
Key dates for HB4042: Effective date is 2025-06-22. Consult with legal counsel regarding applicability.
HB4042 establishes the following penalties: administrative/civil penalty of Variable based on existing Title 121 statutes for Failure to comply with safety standards or pay fees (now applicable to propane/non-natural gas systems). Consult with legal counsel for specific applicability to your situation.
HB4042 primarily affects utility companies and energy providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
